Nepal Strengthens Belt and Road Ties with China, Paving Way for New Development Projects

Nepal and China have signed a framework agreement on the Belt and Road Initiative (BRI), revitalizing their commitment to infrastructure and economic cooperation after an initial pact was signed in 2017. The agreement, announced by Nepal’s Ministry of Foreign Affairs on Wednesday, sets the stage for future projects that will enhance connectivity and trade between the two nations.

This milestone comes during Nepalese Prime Minister K.P. Sharma Oli’s official visit to Beijing, his first foreign trip since assuming office in July. Breaking with tradition by choosing China over India as his inaugural international destination, Oli underscored Nepal’s growing partnership with China.

The new framework opens doors for various projects, including road upgrades and transportation corridors, that are expected to boost Nepal’s infrastructure and economic growth. Despite previous delays due to political consensus challenges, the signing signifies a renewed commitment from both countries to move forward.

While concerns over debt have sparked debate within Nepal’s coalition government, China’s contributions to Nepal’s infrastructure development have been notable. For instance, the $216 million Chinese-funded international airport in Pokhara, inaugurated last year, stands as a testament to BRI’s potential to transform regional connectivity.

Although operational challenges persist, such as airspace restrictions, the airport symbolizes Nepal's ambition to become a significant hub in South Asia, with China’s support playing a crucial role in that vision.

This framework agreement is expected to further solidify Nepal’s position within the BRI, fostering economic growth and development through enhanced connectivity, trade, and infrastructure cooperation with China.